Investalk 2017 FIRST QUARTER

Dr Rashid Abdulla Al Investments Haji, General Manager of breaks ground on Properties Investment Mirdif Hills project

06 INTERVIEW 17 EVENTS

Residential Property Yields across cities – H1 2016

UAE banking sector tops Real Estate offers in Gulf with assets worth competitive US$771 billion yields

08 UAE NEWS 20 FINANCIAL VIEWPOINT

Dubai Investments joins DIP grows with forces with subsidiaries 100 new for sustainability companies

11 GROWTH 21 SUSTAINABILITY

DII concludes Switchable investments in projects Privacy worth AED 1.1 billion Glass

13 PROJECTS 22 PRODUCTS

PAGE 2 THE INSIDE VIEW

community at large. As a corporate or as individuals, as UAE nationals or as expatriates, employees of Dubai Investments and its subsidiaries have consistently lent a helping hand in programs on humanitarian support, community philanthropy, environment sustainability, social responsibility, volunteer work or nation building. The corporate ethos at Dubai Investments is to play a responsible role in the society and the company resolves to take this community outreach to the next level with concerted initiatives and programs.

Having said this, the company’s giving and sharing philosophy is not limited to 2017 alone. Neither is the company looking at limiting its support to just financial assistance UAE’s leadership has designated 2017 as the to institutions or initiatives. Dubai Year of Giving – with a strong focus on Investments believes that CSR is about doing helping others, promoting philanthropy and good business and creatively addressing humanitarian work to support the significant issues that face business and underprivileged and vulnerable. The society, and not just feeling good. country’s leadership has called upon both Sustainability, CSR, environment and charity the public and private sectors to play their initiatives have a greater focus and long- roles in achieving the strategic objectives term pledge at Dubai Investments, where across the six pillars, ranging from CSR, each employee, individually and collectively, volunteerism, serving the nation, is committed to make a difference to the humanitarian projects, legislation on charity world around us! and role of media. This is aimed at fostering love and care through a realisation that UAE as a nation embraces others, helps when and Thank you so much for your support! where it can and always has the desire and ability to be a force for good.

From the company’s side, Dubai Investments Khalid Bin Kalban has always believed in utilising its expertise, reputation and brand presence in supporting Managing Director and Chief Executive Officer the community in a sustainable manner across all spheres. Since its inception 21 years ago, Dubai Investments has implemented a holistic approach to doing business, one that benefits all relevant stakeholders and the

PAGE 3 Investalk 2017 FIRST QUARTER COVER STORY

Healthy Growth Government and private sector join hands to create world-class healthcare infrastructure in the UAE

The UAE healthcare market is definitely on a 12.1 per cent from an estimated $40.3 billion in healthy growth trajectory. The healthcare sector in 2015 to $71.3 billion in 2020. An increase in the the country and the Gulf has taken a centre stage population and the rising cost of treatment are the amidst a rising prevalence of lifestyle-related primary factors aiding this growth. diseases and increased investments from the government as well as the private sector to cater to Growth Drivers the demand for world-class health and medical services. The UAE population is expected to grow 2.9 per cent annually between 2015 and 2020 and this is With a vision to develop international standards of likely to increase the demand for healthcare. Each healthcare infrastructure, expertise and services, country in the GCC has devised a long-term the UAE government is extensively expanding and strategic plan or vision to expand and upgrade its upgrading its healthcare systems. The healthcare healthcare system. market in the UAE is projected to reach $19.5 billion [AED 71.56 billion] in 2020, indicating an UAE is leading the pack, with the five-year health annual average growth of 12.7 per cent from 2015, strategy of Abu Dhabi mainly concentrated on marginally higher than the GCC growth average. e-health and healthcare informatics, in addition to The outpatient and inpatient markets are projected reducing capacity gaps and improving the quality to reach $12.1 billion and $7.5 billion respectively of care. In January 2015, Dubai Health Authority in 2020. The country is also likely to see a nearly revealed its 10-year healthcare plan that focuses three per cent annual increase in the number of on building a world-class and patient-centric hospital beds required, presenting a demand of model of care. more than 13,800 beds by 2020. Sensing the demand, the government as well as private players have injected multi-billion dollars The GCC healthcare market is projected to grow at into the healthcare sector to construct large and a Compounded Annual Growth Rate [CAGR] of specialised healthcare facilities. The GCC region

PAGE 4 has nearly 350 hospital projects under various The government of Abu Dhabi has entered into stages of development. There are several initiatives partnerships with major international hospitals. within the GCC healthcare sector that are focused Public hospitals in the UAE such as Sheikh Khalifa on medical tourism and are likely to not only General Hospital and Rashid Hospital have handed attract patients from across the world but also over their management to the private providers. In reduce the outbound visits of citizens for 2015, the government of Dubai proposed a new specialised treatment, thereby aiding the growth public-private partnership [PPP] law to encourage of the healthcare sector in the region. private sector funding. Such laws and strategies are likely to increase the private sector involvement Trends in UAE’s healthcare sector. Private sector involvement is becoming imperative to meet the rising demand for healthcare as well Overall, favourable socio-economic factors as to reduce the burden of costs on the government coupled with the UAE government’s focus on finances. Government policies to increase insurance coverage and provide other adopting a patient-centric model and improving infrastructure support as well as financial the overall delivery system will continue to drive incentives are drawing investors to the region. the growth of the UAE healthcare industry.

Dubai Investments: Strategic focus in healthcare sector

Integral to its strategy to consolidate its presence across diversified businesses, Dubai Investments has identified healthcare as a key growth sector, amidst growing market opportunities the industry offers in the UAE and the GCC.

As part of this strategy, Dubai Investments invested 26.75% of the total equity financing in King’s College Hospital Healthcare LLC, a joint venture with Al Tayer Group and Ashmore Group Plc. KCH Healthcare is developing the 100-bed King’s College Hospital Dubai, a multi-disciplinary hospital in Dubai Hills expected to be ready by Q4 Dubai Investments had earlier collaborated with of 2018, and several clinics across Dubai. The King’s NMC Healthcare to open the NMC Hospital in College Hospital Dubai, first UAE-based hospital to Dubai Investments Park [DIP] in July 2014. The offer liver transplant procedures, will offer four hospital, equipped with 60 beds and 40 specialties – Paediatrics, Endocrinology, consultations rooms, offers over 25 key Orthopaedics and Obstetrics and Gynaecology – specialties coupled with round-the-clock as well as other acute and general medical services. ambulance, pharmacy and emergency services.

Dubai Investments has announced a 230-bed Dubai Investments also unveiled plans to launch hospital in the Mirdif Hills a mixed-use residential, a healthcare fund sized around AED1 billion, and commercial and retail project being developed by mandated with acquisition of real estate assets Dubai Investments Real Estate Company [DIRC]. in the healthcare sector. The Fund will be The hospital, to be operated by NMC Healthcare, structured to provide cash yield of around 8 will offer multiple specialties once operational and percent per annum with attractive IRRs on easy access and convenience to residents in Mirdif, exit. Dubai Investments is supporting the Al Mizhar, Al Khawaneej and Al Warqa fund with seed capital of up to 10 per cent. neighbourhood.

PAGE 5 Investalk 2017 FIRST QUARTER INTERVIEW

Dr Rashid Abdulla Al Haji, General Manager of Properties Investment Redefining Real Estate sector with pioneering concepts Properties Investment LLC, established in 2002, is Dr Rashid Abdulla Al Haji, General Manager of a joint venture owned 70% by Dubai Investments Properties Investment PJSC and 30% by Union Properties and engaged in investment in, and development of, real estate Can you elaborate on the salient features of properties. Over the years, Properties Investment Green Community – DIP? has developed iconic projects such as the Green Green Community – DIP is a pioneering and Community – DIP and Courtyard by Marriott in quality development by Properties Investment, Dubai Investments Park and recently launched providing a new way of life and setting new the Green Community West DIP – Phase III. In an standards in a secure community lifestyle with interview with INVESTALK, the General Manager landscaped gardens, stone streets and a relatively of Properties Investment, DR RASHID ABDULLA traffic-free environment. AL HAJI, speaks about the latest project and the company’s future plans. Excerpts: The development prides itself on its modern and beautiful surroundings with natural greenery Please provide an overview of Properties being the key to the peace and tranquility. Green Investment’s journey and its key projects. Community – DIP offers residents a unique way of Since its inception in 2002, Properties Investment lifestyle, away from the hustle and bustle of the has played a pivotal role in the UAE real estate city. sector. The company has set new benchmarks by launching pioneering residential concepts such Please shed light on the Green Community as Green Community – DIP. With its quality and West DIP – Phase III and its different stages? delivery standards, Properties Investment has redefined the dynamics of property development Green Community West DIP – Phase III is envisaged in the highly-competitive UAE real estate landscape as a natural extension to existing Green Community with projects such as the Courtyard by Marriott development, inspired by the design characteristics and The Market in Dubai Investments Park. of the community in terms of theme, connectivity, landscaping as also the look and feel. The company has expertise across all phases of the development cycle including sales, The phase comprises 210 townhouses and 16 development, asset management, property duplex apartments, besides a café, restaurant and acquisitions, planning and construction. Building retail units. The construction is going as per on the success of its projects, Properties Investment schedule, with 76 townhouses in stage 1 to be continues to expand its portfolio and replicate its handed over in the second quarter of 2017. The proven business models through new residential stage 2 will include 96 townhouses and expected and commercial projects such as Green to be handed over by October 2017; while stage Community West DIP – Phase III, which has been 3, comprising 38 townhouses, 16 apartments and designed in line with market requirements retail units, is expected to be completed by and customers’ needs. end of 2017.

PAGE 6 Green Community West DIP – Phase III also residential units as also retail components. Plans includes an expanded Market section, with are being finalised on the new project. enhanced commercial and retail options to support the needs of the residents and visitors. The company is also working on expanding The Market shopping arcade next to the Green What are the benefits on offer to investors of Community – DIP. Additional 200 retail units will Green Community West DIP – Phase III? be developed across 65,000 square feet as part of the expansion. These will also include new food The Green Community West DIP – Phase III offers courts, cinemas and parking to complement the investors and end-users an array of townhouses, existing choice of attractions. duplex apartments and retail units, complemented by unmatched amenities and a community What does the future have in store for lifestyle experience amidst natural surroundings. Properties Investment?

Properties Investment is offering post-handover With a clearly-defined growth road map, payment plans stretching from two to eight years, Properties Investment differentiates itself with directly from the developer to investors in Green amazing projects and investment opportunities Community West DIP – Phase III. These payment to customers, investors and the wider community. options are aimed at facilitating the process for Simultaneously, the company continues to investors without subjecting them to financial diversify its revenue streams through asset burden. management, and other aspects of the How do you analyze the investor response to development and investment cycle including the Green Community Phase III, and how do acquisitions, sourcing opportunities, leasing, you plan to chalk out the strategy on the other administration & management of properties. stages of the project? Capitalising on the strong fundamentals and The fundamentals of the real estate industry expertise of its strategic partners – Dubai remain strong and the growth is sustainable. Investments and Union Properties, Properties Properties Investment had evaluated the market Investment is set to play a key role in the property scenario before launching the Green Community development and management sphere in the West DIP – Phase III. The company is committed to years to come. future stages of the project completion and handover – and is well positioned to capitalise on the emerging opportunities in the sector. PI PROJECT PORTFOLIO What are the other projects being developed • Green Community, Dubai by Properties Investment? Investments Park Properties Investment is planning to develop two • Courtyard by Marriott, DIP new residential buildings within DIP, which will • The Market cater to the middle-tier investor segment. The G+4 buildings will have a total of 180-plus • Green Community West DIP-Phase III

PAGE 7 Investalk 2017 FIRST QUARTER UAE NEWS

5

UAE banking sector tops in Gulf with assets worth US$711 billion

The UAE’s banking sector came first on the list of the banking sectors in terms of asset volume in the GCC region, with a total value of about US$711 billion, over (AED 2.61 trillion) in 2016, according to statistics from the Central Bank of the UAE, issued at the end of 2016.

This reflects the extent of the sector’s importance, experts and analysts said. The Saudi Arabia banking sector came second, with a total asset value of $602 billion, while the banking sector of Qatar The merger between the National Bank of Abu came in third place with $349 billion, followed by Dhabi and First Gulf Bank took the lead in terms of Kuwait with $198 billion, Bahrain with $193 billion capital stock, whose value reached $26.6 billion, and finally Oman with around $70 billion. followed by the Qatar National Bank with around $16.5 billion, Emirates NBD with $14.7 billion, the In terms of banks with the largest assets, the National Commercial Bank of Saudi Arabia with anticipated merger between the National Bank of $14.1 billion and the National Bank of Kuwait with Abu Dhabi and First Gulf Bank came in the second $9.5 billion. place with around $183 billion, while the Qatar National Bank took first place with around $198 billion. - Wam

UAE economy expected to grow by 4% in 2017

The UAE economy will achieve a growth rate of between 3.5 to 4 per cent during 2017 amid activity and intensity of the performance of vital economic sector, said Sultan bin Saeed Al Mansouri, UAE Minister of Economy. maintain the strength of the national economy He mentioned that this growth will be spurred by growth. the country’s growing investment attractiveness, with a view to achieve numerous accomplishments He added that the oil sector contributes around 30 in national economic indicators. per cent of the country’s total local production, as it witnesses a current price stabilisation, while Al Mansouri said that projects which were expecting a growth in local non-oil products by 3.7 percent this year. announced as part of the UAE Vision 2021 would - Wam

PAGE 8 UAE launches National Year of Giving Strategy

Under the directives of His Highness Sheikh 5 Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the UAE government has launched the National Strategy for the Year of Giving, declared by the UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan.

The strategy, the largest of its kind on a national level, aims to promote philanthropic and humanitarian work across the public and private sectors, and place giving at the heart of the national agenda. The strategy comprises six pillars: With the aim of instilling a culture of giving across • Engage private companies in development the UAE and institutionalising charity efforts, the projects as part of their CSR. National Strategy for the Year of Giving is a major step towards promoting and sustaining • Promote the spirit of volunteerism through philanthropy and humanitarian work in the UAE. In specialised volunteering. addition, it intends to ensure that private sector • Enhance the desire to serve the nation through companies contribute their fair share to the development of the country. individual responsibility. • Development of humanitarian organisations. The National Strategy has launched a total of 1,000 • Establish a comprehensive legislative framework government-backed initiatives – each with a specific agenda and timeframe – with the goal of on charity work. establishing a comprehensive giving framework • Leverage the role of media in supporting the Year that will boost the levels of happiness, stability and of Giving. well-being. - Wam

Expo 2020 Dubai to serve world a Taste of UAE

Expo 2020 Dubai has launched a search for producers of authentic Emirati and regional products including dates, Arabian coffee and sweets, chocolate and spices, which will form part of a warm, mouth-watering welcome offered to Expo’s millions of visitors from around the world.

This is the second of up to 40 licensed product categories put out to tender by Expo. Licensed food products will be sold at select outlets across The tendering process to become a licensed-food the UAE, including dedicated Expo retail stores producer at Expo 2020 is fully online and open to that are expected to open in 2018, as well as the businesses of any size from anywhere in the world. Expo 2020 Dubai site. - Wam

PAGE 9 Investalk 2017 FIRST QUARTER GROWTH Al Mal Capital appoints top executives Al Mal Capital PSC has announced the appointment of top executives to drive its business growth and expand its portfolio across existing and new sectors and geographies. The Company has appointed Sanjay Vig as Managing Director – Corporate Advisory & Direct Investments and Charles Monchau as Head of Investment Management.

GROWTH

DI divests Marmum Dairy, United Sales Partners

Dubai Investments PJSC announced that Dubai With a successful diversification strategy as part Investments Industries [DII] has divested its 100% of its business, the companies attracted a lot of stake in Marmum Dairy Farm and its distribution strategic interest. The overall impact of this exit unit United Sales Partners LLC [USP] to UAE-based on Dubai Investments income statement resulted Elite Agro LLC, a subsidiary of Emirates Advanced in gain of AED 186 million.” Investments Group LLC. He added: “The divestment in Marmum and USP Khalid Bin Kalban, Managing Director and CEO of is part of the company’s strategy to continuously Dubai Investments PJSC, said: “Dubai Investments create value for its stakeholders. The sale to Elite acquired Marmum Dairy Farm in 1996, and Agro will enable Marmum and USP to reach next established USP in 1999 and these investments level of growth given the synergy of their were well timed as the company capitalised on businesses.” the rapid growth of the food sector in the region.

PAGE 10 GROWTH

DIP grows with 100 new companies, 33% surge in warehouses’ lease area

Dubai Investments Park [DIP] is fast emerging as demand, DIP has also announced the opening of the preferred destination for businesses and a new 114-room 4-star Fortune Park boutique residents alike, in view of its proximity to Dubai hotel to cater to the business and leisure travellers. World Central, and the Expo 2020 site. The new hotel is part of the plan to open eight new hotels and serviced apartments in the next An indication to this is the increase in the number three to four years in DIP. To be built by individual of tenants and sub-tenants in DIP, with over 100 investors, the hotels and apartments will be of new companies either leasing or sub-leasing various star categories. premises in the 2,300-hectare business park. Similarly, the total area leased by the existing The new hotels will perfectly complement the companies during 2016 has also increased by 33 growth of DIP as a city-within-a-city. It will also per cent – from approximately 6.5 million square provide a major boost to the hospitality sector as feet to 9 million square feet, particularly in Dubai expects to attract as many as 25 million warehouse storage spaces. visitors during Expo 2020, including 17.5 million overseas tourists. The Emirate will require an The total number of companies within DIP is over additional 45,000 hotel rooms to match the rising 4,600, covering the entire spectrum of industries demand by 2020 and an investment of nearly – from medium to light industrial units in $7.1 billion is expected in hotel projects. aluminium, steel manufacturing, chemicals, pharmaceuticals, textiles, plastics, oil & gas, The growth of DIP comes amidst increased construction, building materials and contracting accessibility to and out of the business park, with sectors. During the year, DIP also witnessed a the opening of the new Al Houdh Interchange, surge in subleasing of labour and accommodation built by Dubai Roads & Transport Authority. With rooms from 16,000 to 21,000 rooms. The increased the new interchange, DIP enjoys easy access from capacity will help accommodate 84,000 labourers Sheikh Mohammed Bin Zayed Road [north as compared to 68,000 labourers earlier. well as south], as also from port thus ensuring hassle-free movement in and out of Reflecting its growing pre-eminence and surging the park.

PAGE11 Investalk 2017 FIRST QUARTER GROWTH MODUL University Dubai students team up for Microsoft Imagine Cup

MODUL University Dubai has announced that its The entries, showcased under the Smart City category, students are collaborating for the Microsoft Imagine will be submitted to Microsoft Imagine Cup jury. The Cup UAE 2017, Microsoft’s premier student first place winner will be awarded $15,000, second technology competition conducted worldwide. place winner $10,000 and third place winner $7,000. The submitted solutions should run on the Azure As part of its participation, seven MODUL University cloud and demonstrate the potential for digital Dubai students across three teams have come transformation. together to develop apps using Internet of Things, Big Data, Block Chain, Machine Learning and other The winner at the UAE level competition will proceed technologies for the Microsoft Imagine Cup – to make to the Middle East and Africa stage, and a total of six everything smarter, be it in hospitality, services, teams from the region will qualify for the worldwide gateway payments, transportation, retail and finals in Seattle, Washington – the home of Microsoft, entertainment. for the Imagine Cup trophy and cash prize of $100,000. GROWTH

Al Mal Capital acquires US-based Poinsettia Plaza

Al Mal Capital PSC has announced the acquisition residential complex in Louisiana comprising 290 of Poinsettia Plaza – the 153,000 square feet apartments, which the company exited in 2015 neighbourhood shopping centre located in for an IRR of 16%. Ventura, California. Poinsettia Plaza is anchored by tenants such as The transaction, executed through Al Mal Direct Ross, Petco, Starbucks, Office Depot, Coffee Bean, Investments, builds on the company’s FedEx, among many others. The forward strategy investments in private companies and real estate is to complete capital improvement to the assets in the region and beyond. The Poinsettia exterior of the property and proactively increase Plaza acquisition is the second investment for Al occupancy to achieve an increase in yield and Mal Capital in US real estate. The first was in a realise capital gains upon exit.

PAGE 12 GROWTH Lite-Tech opens first-of-its-kind LED manufacturing unit Lite-Tech Industries has inaugurated the first-of-its-kind complete LED fixtures manufacturing unit in the region, reinforcing its leadership in the energy-efficient LED lighting segment.

This manufacturing unit was inaugurated in the presence of Chairman of the Board of Directors of Lite-Tech Industries, Abdulaziz Bin Yagub Al retail to world-class quality standards, in the UAE. Serkal, Board members of Masharie & Philips and The LED luminaires from Lite-Tech lead up to company officials. 85% savings, compared to traditional conventional incandescent and fluorescent Lite-Tech Industries, which has 23 years’ expertise bulbs. The new line offers 100% locally-made in the sector, also announced that the new facility LED luminaries including down lights, panel at its factory in Ras Al Khor Industrial Area in lights, spot lights, cove lights and ceiling lights in Dubai will manufacture nearly 400,000 LED indoor segment and high bays, flood lights and fixtures in the first year. Built with an investment street lights in outdoor segment. Customers now of AED 3 million, the company plans to scale up can have a product with warranty of up to 7 years its capacity to nearly to 600,000 LED fixtures and 100% peace of mind for quality & by 2019. performance and security of investments.

With the new capabilities, Lite-Tech will The new facility comes amidst growing market manufacture customised LED chips and for the LED segment, surging by approximately components and assemble them in various 10% year-on-year. Regionally, LED takes up about printed circuit boards and fixtures for both indoor 20% to 30% of the lighting industry, but it is still and outdoor applications across the entire span way below the global average of approximately of verticals – from industrial to commercial to 70% market share it enjoys.

PROJECTS DII concludes investments in projects worth AED 1.1 billion Dubai Investments Industries [DII] has concluded investments in various projects of total estimated value of AED 1.1 billion across diversified sectors as part of its strategic expansion plans in the last two years. value AED 32 million], targeting promising growth sectors such as healthcare, aluminium and DII’s investments include AED 185 million in King’s education, identified as strategic in the UAE Vision College Hospital Healthcare LLC [total project value 2021 and Dubai Industrial Strategy. AED 700 million], AED 110 million in Emirates Aluminium Rolling LLC (Emiroll) in KIZAD, Abu Dhabi The strategic investments for DII, which currently [total project value AED 370 million] and AED 30 has nine companies under its portfolio spanning million in MODUL University Dubai [total project construction and building materials, steel,

PAGE13 Investalk 2017 FIRST QUARTER healthcare, education and IT services, are part of its downstream industries. DII is looking for growth vision to foray into diversified business sectors to opportunities in the downstream industries sector. boost its overall market leadership. DII holds 26.75% stake in King’s College Hospital DII also announced that it is closely targeting Healthcare LLC. The total project value is estimated investments in high-definition security, surveillance at AED 700 million, and includes a 100-bed King’s solutions & automation systems, Information College Hospital in Dubai Hills expected to be ready Technology services, niche construction materials by 2018 in addition to a number of clinics across with Leadership in Energy and Environment Design Dubai. The other partners in the project are Al Tayer certification and standards and studying opportunities in downstream plastics and Group and London-based Ashmore Group Plc. polymers sectors. DII holds 90% stake in MODUL University Dubai, DII has 30% equity stake in Emiroll, to be set up in Austria-based private university specialised in Khalifa Industrial Zone Abu Dhabi [KIZAD] in a joint tourism and hospitality management courses. The venture with DUBAL Holding and Singapore-based University, set up with a total project value of AED MARS. The total project value of Emiroll is 32 million, operates a 25,000 square feet campus at approximately AED 370 million and once operational, One JLT, Dubai. DACH Advisory holds the remaining the plant will manufacture 65,000 tonnes of 10% stake in the entity. aluminium coils per annum for applications in PROJECTS

LABTEC wins AED 11 million contracts in UAE, Eritrea LABTEC LLC has won projects worth AED 11 million of projects in Dubai, with total contract value in the UAE and Eritrea to supply and installation of exceeding AED 28 million. The ISO-9001 certified laboratory furniture and fire-rated doors. LABTEC, which operates an 8,000 square metre facility in Sharjah, is also eyeing expansion in Kenya The new projects won by LABTEC include an AED 6.6 amidst surging demand for laboratory furniture million contract for supply and installation of fire- solutions. rated doors in the AED 6.6 million ANWA by Omniyat Tower in and an AED 1.3 million The Company has also supplied to a number of supply and installation of fire-rated doors for a three- projects in Africa, including Arba Minch, Ethiopia star hotel in Al Jaddaf, Dubai. worth AED 3.36 million – completed in 2016, Ostuka LABTEC has also won AED 1.04 million contract from Pharmaceutical in Egypt [AED 500,000] -completed Al Taweelah Alumina, an Emirates Global Aluminium in 2016], EVA Pharmaceuticals in Egypt [AED930,000 [EGA] project to construct a Greenfield alumina – completed in 2016] and in advanced negotiations refinery in Khalifa Industrial Zone Abu Dhabi for for hospital and university projects in Ethiopia and laboratory furniture and fume cupboards; and a other parts of Africa. Letter of Intent from United Nations Development Programme [UNDP] for a AED 2.88 million contract in Eritrea, Africa. LABTEC has also finalised plans to supply the Forest Stewardship Certification [FSC] products in the GCC The company is currently negotiating projects to supply fire-rated doors and wardrobes for a number as part of its green building concepts.

PAGE 14 PROJECTS

Green Community West DIP – Phase III to hand over 76 townhouses in Q2 Properties Investment LLC [PI] has announced that Khalid Bin Kalban said: “The fundamental drivers of the Green Community West Dubai Investments Park UAE’s real estate sectors are strong, with investor – Phase III is progressing as per schedule, with 76 confidence and interest on the rise. Concurrently, townhouses in stage 1 to be handed over in the Dubai’s growing reputation as the business and second quarter of 2017. leisure hub, coupled with the anticipated demand for Expo 2020, are expected to catapult the Emirate’s The Green Community West DIP – Phase III, covering real estate sector in the coming months. Amidst an area of 1.48 million square feet and a natural these trends, Properties Investment’s Green extension of the Green Community development, Community project offers an unmatched comprises a total of 210 townhouses, including 122 investment opportunity.” four-bedroom and 88 three-bedroom townhouses, 16 duplex apartments, retail units, recreational He added: “Since its inception, Properties Investment centres, swimming pools, squash court and has set new benchmarks in establishing pioneering landscaped areas. residential concepts such as Green Community with unparalleled quality standards. The Company is The project progress and details were unveiled at a aiming to continue its solid legacy through the special event in the presence of Khalid Bin Kalban, Green Community West DIP – Phase III, with its Chairman of Properties Investment and Managing townhouses and duplex apartments offering robust Director & CEO of Dubai Investments PJSC. Exciting opportunities to both end-users and investors.” payment plans spanning two years to eight years are also on offer directly from the developer. Green Community West DIP – Phase III will also The project’s stage 2 will include 96 townhouses and include an expanded Market section, with enhanced is expected to be handed over by October 2017; and commercial and retail options to support the needs the stage 3, comprising 38 townhouses, 16 of the residents and visitors, added Kalban. apartments and retail units, is expected to be completed by end of 2017. The total built-up area of Dewan Architects and Engineers are the lead the project is 1.01 million square feet and sellable consultants and Shapoorji Pallonji Mideast LLC are area is 976,718 square feet. the main contractors of the Green Community West DIP – Phase III project.

PAGE15 Investalk 2017 FIRST QUARTER EXHIBITIONS

Emirates Insolaire panels to be installed on Dubai buildings soon

The coloured solar panels and photovoltaics from The solar panels from Emirates Insolaire also offer Emirates Insolaire LLC will soon dress up buildings high efficiency in generating energy from solar across Dubai as the Emirate is fast moving towards power, with each photovoltaic module capable of a sustainable future powered by renewable generating 170 to 190 watts per square meter for energy sources. roof installation or 110 to 130 watts per square Emirates Insolaire also announced that discussions meter for façade installation. with different authorities and companies across Dubai are in final stages on installing the panels in Emirates Insolaire showcased the KromatixTM buildings. For the first time in history, photovoltaic technology at Solar Middle East exhibition at Dubai panels from Emirates Insolaire can be adapted to World Trade Centre in February. Over 140 exhibitors any façade without compromising on the design and aesthetics of the building. from 85 countries participated in the exhibition.

EXHIBITIONS

Emirates Insolaire showcases solar panel technology at WFES Dubai Investments PJSC is targeting a strong growth Summit [WFES] 2017 in Abu Dhabi at ADNEC in in the booming solar energy market through January. The company is witnessing surging interest Emirates Insolaire LLC. for its solar panels amidst rising awareness towards a sustainable future. Emirates Insolaire LLC showcased the world’s first coloured solar panel technology, including the Emirates Insolaire, committed to growth across the sustainable solar panels, photovoltaic modules and region, North and South Americas, plans to solar thermal collectors at the World Future Energy introduce new solar products by mid-2017.

PAGE 16 EVENTS Dubai Investments breaks ground on ‘Mirdif Hills’ project

Dubai Investments PJSC marked the groundbreaking of the Mirdif Hills project, being developed by Dubai Investments Real Estate Company [DIRC] in January.

The AED 3 billion Mirdif Hills, the only freehold groundbreaking ceremony, the Company is looking project in Mirdif now, is a mixed-use residential, forward to driving the project to completion within commercial and retail development spread across the set timeframe.” 3.9 million square feet and equipped with 1,054 Being constructed in two phases, Mirdif Hills is apartments – a mix of studio, one, two, three- expected to be completed from the Q4 of 2018. bedroom apartments and duplex units, a four-star hotel with 116 rooms & 128 serviced apartments and a 230-bed hospital. Flexible payment plans announced

The groundbreaking ceremony was held onsite in DIRC also announced easy and flexible payment the presence of Khalid Bin Kalban, Managing plans for property purchases in ‘Mirdif Hills’. The Director and CEO of Dubai Investments and payment plan includes 30% payment during the Chairman of DIRC, Obaid Al Salami, General Manager construction phase of the project, and the balance of DIRC, company officials and representatives from 70% payment on handover, making the process the project contractors and consultants. easier for buyers with extended payment terms. Khalid Bin Kalban said: “The sales of Mirdif Hills, As per the plan, a 10 percent down payment is to be launched in December, received phenomenal made on booking, followed by 5% payment on response from investors and end users, which is a signing the sale and purchase agreement within the great endorsement of not only the project features next 30 days, 5% within six months of the booking but also of Dubai Investments and DIRC’s track date, 5% within a year of booking, and 5% within 18 record. The Janayen and Nasayem Avenues were months of the booking date. The balance 70% launched for sales in the first stage. With the payment can be made on handover. EVENTS

‘Who Moved My Cheese’ workshop deals with change management A total of 57 employees of Dubai Investments and subsidiaries attended an interactive workshop dealing with change management. The ‘Who Moved My Cheese’ workshop, held over four days and conducted by life coach Banan Bakkar, illustrated This was followed by one-on-one coaching sessions ways to deal with change with the help of illustrative with each participant, which provided insights on characters, metaphors, stories, role plays, group how to respond to changes & challenges and discussions and simulation games. transform them into opportunities.

PAGE17 Investalk 2017 FIRST QUARTER EVENTS MODUL University Dubai hosts Masterclass

MODUL University Dubai held a Masterclass in February on the future , which was addressed by Fahad Al Gergawi, CEO of Dubai FDI. In his speech, Gergawi highlighted the future initiatives in line with its plans to become a future city, regional gateway and global hub.

The Masterclass is designed to support students in making an informed choice and expanding their horizons on key topics that influence today’s competitive world.

EVENTS

MODUL University Dubai conducts orientation at Dubai Investments

MODUL University Dubai conducted a familiarisation Academic presentations and an overview of Dubai session for its students at Dubai Investments PJSC as Investments portfolio & business were also part of their Orientation Week in February. Nearly 60 showcased during the session. The Mirdif Hills students participated in the orientation session, project by Dubai Investments Real Estate Company which involved welcome address by Mohammed was also showcased as part of the session, followed Saeed Al Raqbani, General Manager of Dubai by a site visit to the Green Community West DIP- Investments Industries, and Zaid Maleh, Managing Phase III show villas in Dubai Investments Park. Director of MODUL University Dubai.

PAGE 18 SUPPORT Dubai Investments employees walk for education

A total of 63 employees from Dubai Investments PJSC and subsidiaries volunteered their time and took part in the Walk for Education organised by Dubai Cares in February. Dubai Investments supported the annual Walk for Education, aimed at supporting millions of children worldwide who do not have access to education.

SUPPORT

Dubai Investments employees volunteer at Al Noor Fun Fair

Employees from Dubai Investments and selling merchandise, managing the food outlets as subsidiaries volunteered and took part in the Hope well as game stalls. Over 4,000 people from various for Children Family Fun Fair organised by Al Noor walks of life attended the Fun Fair. Training Centre in February. Activities undertaken by volunteers included setting up the venue,

PAGE19 Investalk 2017 FIRST QUARTER FINANCIAL VIEWPOINT clusters, which translates to steady gross rental yield to investors. II. Commercial Real Estate offers Unlike the residential sector, the Dubai commercial sector follows distinct dynamics - prime and competitive yields secondary segments are at two different stages of In this newsletter, we examine some of the recent the cycle, maintaining a two-tiered performance. trends in Dubai residential and commercial Prime segment rentals have risen steadily due to real estate. limited supply and strong demand from blue chip After a correction that lasted several quarters, Dubai international tenants seeking Grade-A quality build. emerged as one of the few remaining, major The secondary segment is oversupplied with a large investment destinations in the region underpinned by strong fundamentals, robust regulation and inventory of Grade-B strata buildings, offering increasing infrastructure spending. discounted rents and partial fit-outs to compete. Yields are relatively attractive compared to other The demand for single-owned Grade A stock has global cities, especially in the mainstream segment. been outstripping supply for the last few years, causing some large corporates to seek out built-to- Saudi Arabia is the largest investor in Dubai real suit premises or pre-lease Grade A buildings nearing estate with AED 8b investments, followed by Qatar completion. This trend is likely to continue and Kuwait (AED 2b each), and Oman and Bahrain throughout 2017. (AED 1b each). Dubai’s Commercial Real Estate Cycle

Residential Property Yields across the world cities – H1 2016

III. Conclusion I. Residential Investment in Dubai real estate offers competitive yields for investors compared to other major The consensus view is that the market is at the bottom of the cycle. Mainstream areas are already cities globally. marking a steady rise, while the prime areas The residential sector in prime locations, especially continue to witness marginal sale price contractions Jumeirah and Downtown will offer a high degree of in the range of 1-2% Q-o-Q. The consensus view is capital protection with reasonable gross yields of that there could still be a softening in the prime around 4-5%. Mainstream locations however could segment ahead of an expected uptick in 2017. prove to be the more attractive segment for While capital values have softened, rentals have investors with a greater risk appetite. Those been resilient pushing yields higher for both prime investors should expect to be rewarded with yields and mainstream properties. of around the 8% mark. Investors eyeing steady yielding assets and scouting The commercial sector in prime locations, especially for lucrative entry points and bulk deals, can still DIFC and D3 offer attractive yields of around 6% find an opportunity to capitalise on this trend. and are expected to maintain a positive outlook Mainstream properties, such as Discovery Garden, over the next 3 years. Secondary locations on the Jumeriah Village, JLT, and The Greens, enjoy high other hand are arguably less attractive due to occupancy levels due to their proximity to economic competing oversupply.

PAGE 20 SUSTAINABILITY

Dubai Investments joins forces with subsidiaries to support environment, community & Year of Giving As part of its continuous efforts and initiatives to Khalid bin Kalban, Managing Director and CEO of implement sustainable strategies, Dubai Dubai Investments, said: “Dubai Investments is Investments PJSC organised a training session in committed to the cause of sustainability across its February for ‘Sustainability Champions’ from Dubai operations, performance and projects. The Investments and its subsidiaries under the theme Company has always implemented industry-best ‘For a better partnership within the Dubai standards in the domain and also issued a new Investments family.’ strategy for Smart Sustainability that recognises specific objectives for sustainable initiatives in the The session served as internal training and country in line with government’s vision.” orientation program for Dubai Investments and its subsidiaries and discussed various concepts of Kalban added: “Dubai Investments puts significant sustainability, corporate social responsibility and emphasis on environmental and social issues and innovation. The aim of the session was to realise the handles them with utmost responsibility. This shared benefits of the United Nations Sustainable includes support of the Smart Dubai vision to Development Goals 2030 initiative, linking society, produce clean energy and reducing carbon environment, companies and employees to further emissions, ensuring the safety of employees, the UAE Vision 2021 and fulfill the objectives of the serving the society through volunteering efforts UAE’s ‘Year of Giving’ initiative for 2017. and giving back to the communities where it operates. Dubai Investments and its subsidiaries are A total of 16 ‘Sustainability Champions’ took part in committed to United Nations Sustainable the orientation session, which included employees Development Goals 2030 and UAE Vision 2021; and from Dubai Investments, Dubai Investments Park, look forward to launch volunteer and social Dubai Investments Industries, Masharie, Dubai programs that allow the company to meaningfully Investments Real Estate Company, Emicool, Emirates engage with the community throughout the Year of Float Glass, Lumiglass Industries, Al Taif Investment, Giving.” TechSource and Emirates Extruded Polystyrene. SUSTAINABILITY DI employees take steps towards healthy lifestyle Dubai Investments employees logged over 12.58 million steps as part of the Step Challenge in November-December 2016 as part of its special initiative to encourage healthy lifestyle. All employees were given a fitness band to help them track the number of steps taken every day. category with over 1,180,980 steps during the 30- Over 90 employees signed up for the challenge. day period, while Jeremy Tandiama was the winner Taha Muallim was declared the winner in the men’s among the females with 423,848 steps!

PAGE21 Investalk 2017 FIRST QUARTER PRODUCTS Switchable Privacy Glass

Dubai Investment's subsidiary Saudi American Glass back again can be triggered from a range of wall LLC supplies Electrically Switchable Glasses, which switches, remote controls, movement sensors, light offers Instant Privacy to all users. With the glasses, sensors or timers, depending on each customer’s at the flick of a switch, the glass can become opaque individual needs. from transparent and vice-versa. Saudi American Glass are the sole Gulf regional representatives of Smartglass International, who are Ideal for hotel bathrooms to ensure privacy, the one of the world’s leaders in the technology of switchable privacy glasses – the only product of its Electrically Switchable Glasses with a long and kind – are highly functional and can also be used in successful track record in the field. Numerous hospitals, particularly in examination rooms and variations of privacy switchable glass can be also in offices – board rooms, conference rooms, supplied including colour tinted, fire rated, double front entrances etc to offer added security and glazed, curved and shaped privacy glass. confidentiality. This transformation to opaque and

For the last 20 years, innovation has been at the core of all product launches at Dubai Investments. Aimed at driving value to its stakeholders, Dubai Investments unveiled a number of product innovations – which have set new benchmarks across sectors. The products have been driven by pioneering technologies and the latest knowhow across specific industries, to deliver optimum value.

PAGE 22 DI GALLERY

The Green Community West DIP – Phase III project was unveiled at a special event in January. The event was attended by top management of Dubai Investments & subsidiaries and media. The show villas were also open for public viewing.

Khalid Bin Kalban was honoured by Imam Malik College for Sharia & Law for Dubai Investments’ support to the Islamic Economy Forum, held in Dubai in March.

Lite-Tech Industries inaugurated the first-of-its- kind complete LED fixtures manufacturing unit in the region in December, in the presence of Board members of Masharie & Philips. The facility will manufacture nearly 400,000 LED fixtures in the first year.

Khalid Bin Kalban received Sanchuan Tian, Executive Vice-President of China State Construction Engineering Corporation Middle East LLC [CSCEC], and Huang Chuping, Executive DGM – Building Division of the company, in March. CSCEC are the contractors for Mirdif Hills. The Chinese officials handed over a memento to Kalban.

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